California’s Drinking Water Market: Key Drivers and Funding

California’s drinking water infrastructure needs are defined by a mix of long-term challenges and strategic state initiatives. The state is investing billions to modernize its systems and protect its vital waterways.

• Population Growth and Water Scarcity: California’s population is projected to grow, while its existing water supply is not keeping up. This creates a projected water supply deficit, which the state is trying to address with new sources and better management of its existing supply. The State Water Resources Control Board has distributed approximately $880 million to water systems and communities in fiscal year 2023-2024 to improve drinking water and increase water supplies.
• Aging Infrastructure: Much of the state’s drinking water infrastructure is old and in disrepair, leading to frequent main breaks, water loss, and a higher risk of contamination.
• State and Federal Funding: The primary sources of funding are:
  • Drinking Water State Revolving Fund (DWSRF): This federal-state partnership, administered by the California State Water Resources Control Board, provides low-interest loans and grants for a wide range of drinking water projects. The federal Bipartisan Infrastructure Law (BIL) has infused the DWSRF with billions in new funding, with the U.S. Environmental Protection Agency (EPA) announcing $276 million for water infrastructure in California for fiscal year 2025. You can find more information about the DWSRF and its project lists on the State Water Resources Control Board’s website.

Finding Future Projects with Early-Stage Sales Intelligence

In California’s competitive market, waiting for an RFP is often too late. By the time a project is formally bid, the solution, technology, and even the preferred vendor may already be determined. Early-Stage Sales Intelligence is the key to winning. It means tracking public documents that signal a future project long before it’s officially announced.

• DWSRF Project Priority Lists and Intended Use Plans: The State Water Resources Control Board publishes Intended Use Plans (IUPs) for the DWSRF. These documents list projects slated for funding, giving you a direct look into which communities are planning projects like water treatment plant upgrades, lead service line replacements, or new pipeline construction, often 1 to 5 years before an RFP is publicly released.
• Feasibility Studies & Water Plans: Municipalities and regional water districts conduct extensive studies and develop long-term water plans to address future needs. These documents, which are often publicly available, detail specific water infrastructure challenges and potential solutions.
• Public Meeting Records: Local government meeting minutes and preliminary engineering studies often contain discussions about infrastructure needs and proposed solutions. By tracking these documents, you can discover a community’s challenges and engage with key decision-makers 1 to 5 years before an RFP is ever created.

How Citylitics Can Help

Citylitics is your partner for navigating the California Drinking Water market. We use artificial intelligence and machine learning to analyze millions of public documents from sources like the State Water Resources Control Board, regional water districts, and local municipalities. We transform this fragmented data into actionable Early-Stage Sales Intelligence tailored to your specific market. By using Citylitics, you can:

• Identify Planned Projects: Our platform tracks projects mentioned in CIPs, budgets, and public meeting minutes, giving you a comprehensive view of which communities are planning to invest in their drinking water infrastructure.
• Follow the Funding: We monitor applications and awards for programs like the DWSRF to pinpoint which projects have secured financing and are most likely to move forward.
• Influence the Conversation: By finding projects early, you can engage with the right public officials and become a trusted advisor, helping to shape the project’s scope and specifications to align with your company’s strengths. This proactive approach significantly increases your chances of winning the project.

Learn how to uncover, target, and influence upcoming wastewater infrastructure projects. Request a demo of Citylitics today and start improving your win rates.